Exxon Mobil Corporation (XOM - Free Report) has restored crude oil production offshore Guyana to the range of 80,000-90,000 barrels per day (bpd), after clearing up the technical glitch with the gas reinjection equipment. The director of Guyana's Environmental Protection Agency, Vincent Adams, confirmed about the production resumption at the site.
Problems associated with the gas reinjection equipment, which is used to avoid excessive gas flaring, reduced production at the site by 65% to 27,500 bpd last week from early-May levels. After addressing the problem, the company is now flaring less amount of natural gas and reinjecting more, which is resulting in higher production volumes from the deepwater Stabroek block, offshore Guyana.
Two of its three gas handling systems are currently working, which is enabling it to use 85% of gas production from the reservoir. Once the third system comes online, the company is expected to reach the 120,000-bpd oil production mark.
Notably, it estimates gross resources of more than 8 billion barrels of oil equivalent from its 16 promising discoveries in the Stabroek Block. The discoveries made so far on the block have the potential to add five FPSO vessels that will be capable of yielding 750,000 barrels of oil per day by 2025. ExxonMobil commenced production in the block last December.
Esso Exploration and Production Guyana Limited, a subsidiary of ExxonMobil, is the operator in the Stabroek Block with a 45% stake. The respective subsidiaries of Hess Corporation (HES - Free Report) and CNOOC Limited (CEO - Free Report) have 30% and 25% interest in the block.
Price Performance
The company’s stock has gained 22.5% since the beginning of the second quarter compared with 8.9% rise of the industry it belongs to.
Zacks Rank & Another Stock to Consider
Currently, ExxonMobil has a Zacks Rank #2 (Buy). Another top-ranked player in the energy space is Chaparral Energy, Inc. , holding a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Chaparral Energy’s bottom line for 2020 is expected to rise 57.8% year over year.
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
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Exxon Mobil Corporation (XOM - Free Report) has restored crude oil production offshore Guyana to the range of 80,000-90,000 barrels per day (bpd), after clearing up the technical glitch with the gas reinjection equipment. The director of Guyana's Environmental Protection Agency, Vincent Adams, confirmed about the production resumption at the site.
Problems associated with the gas reinjection equipment, which is used to avoid excessive gas flaring, reduced production at the site by 65% to 27,500 bpd last week from early-May levels. After addressing the problem, the company is now flaring less amount of natural gas and reinjecting more, which is resulting in higher production volumes from the deepwater Stabroek block, offshore Guyana.
Two of its three gas handling systems are currently working, which is enabling it to use 85% of gas production from the reservoir. Once the third system comes online, the company is expected to reach the 120,000-bpd oil production mark.
Notably, it estimates gross resources of more than 8 billion barrels of oil equivalent from its 16 promising discoveries in the Stabroek Block. The discoveries made so far on the block have the potential to add five FPSO vessels that will be capable of yielding 750,000 barrels of oil per day by 2025. ExxonMobil commenced production in the block last December.
Esso Exploration and Production Guyana Limited, a subsidiary of ExxonMobil, is the operator in the Stabroek Block with a 45% stake. The respective subsidiaries of Hess Corporation (HES - Free Report) and CNOOC Limited (CEO - Free Report) have 30% and 25% interest in the block.
Price Performance
The company’s stock has gained 22.5% since the beginning of the second quarter compared with 8.9% rise of the industry it belongs to.
Zacks Rank & Another Stock to Consider
Currently, ExxonMobil has a Zacks Rank #2 (Buy). Another top-ranked player in the energy space is Chaparral Energy, Inc. , holding a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Chaparral Energy’s bottom line for 2020 is expected to rise 57.8% year over year.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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